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Family Firms, Alliance Governance and Mutual Knowledge Creation
Author(s) -
Bouncken Ricarda B.,
Hughes Mathew,
Ratzmann Martin,
Cesinger Beate,
Pesch Robin
Publication year - 2020
Publication title -
british journal of management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.407
H-Index - 108
eISSN - 1467-8551
pISSN - 1045-3172
DOI - 10.1111/1467-8551.12408
Subject(s) - alliance , business , corporate governance , equity (law) , industrial organization , marketing , finance , law , political science
For family firms, alliances represent a form of heightened entrepreneurial risk‐taking. However, a dearth of research exists on the implications of forms of alliance governance for family firms. In a study of 939 non‐equity alliances of family and non‐family firms, we analyse how contracts and trust influence mutual knowledge creation. Both contract completeness and trust assist non‐family firms in knowledge creation. However, family firms rely on high levels of trust for the creation of knowledge. Knowledge creation suffers when family firms encounter very complete contracts tied to attempts at high levels of trust. The negative interaction effect is especially strong for non‐owner‐run family firms.